Earlyface

IMF has advised President Muhammadu Buhari on its forex policy
to help alleviate the economic downturn currently faced in the
country.

President Muhammadu Buhari and Christine Lagarde
Christine Lagarde, managing director of the International
Monetary Fund (IMF), says Nigeria’s economic situation is
alarming, calling for a flexible exchange rate regime.
Speaking on the World Bank/IMF special edition of BBC’s
HardTalk anchored by Stephen Sackur, Lagarde said Nigeria has a
huge potential, especially in her youth.
Largade maintained that IMF was ready to help Nigeria,
appealing to President Muhammadu Buhari to take steps to move
in the direction of “flexible exchange rate”.
“We are not suggesting that flexible exchange rate is the panacea
in all cases, but in this particular instance, we believe that it
would help,” she said.

“I know it is going to be difficult, and we very much hope that the
Nigerian government under the leadership of President Buhari
will be able to distinguish the value of moving in that direction,
rather than causing the circumstances that can precipitate, a
much more difficult decision making process at some stage.
“We remain completely available to help, we believe that it is
doable, it can be address.” Lagarde Sackur
She described Nigeria as a great country with huge potential, but
decried the current economic situation.
“Nigeria has very strong resourceful and great people. The right
policy mix is needed, which include, in our view, flexible
exchange rate,” she said.
“Nigeria is one of those countries where there’s huge potential,
fantastic youth but also a very alarming economic situation. It is
heavily dependent on the oil resources.
“Both in terms of fiscal revenue and exports. As a result of that,
we have gone public and actually gone to the senate of Nigeria to
explain our views, we believe that a more flexible exchange rate
is in the interest of the Nigerian population.
“If that doesn’t happen, we would continue to see the dual
exchange rate, and putting in place a list of those product and
services that are forbidden in Nigeria for import purposes, cannot
be a substitute to a more flexible exchange rate.”